Ha Noi encourages firms to sign up for insurance plans

Ha Noi agencies are searching for ways to make businesses honour their commitment to buy two types of insurance for their employees - social insurance, which includes unemployment benefits, and health insurance.

They said that unless something was done, there was a danger that the fund could break down in the capital.


Pham Duy Dinh, director of Dong Da District Social Insurance, said that the agency had simplified administrative procedures to make it easier for both employers and employees to make contributions.

This had already indirectly attracted employers to make contributions, as they are expected to under the law, Dinh said.

In past years, about 500-600 enterprises in the district joined up each year. Last year, despite many enterprises being hit by the economic crisis, the district still had about 300-400 enterprises joining.

But Dinh said his agency's work was handicapped by a lack of workers. "We do not have enough specialised workers to go chase more business, big or small, in every road, lane and alley in the district," he said.

Nguyen Ngoc Thien, director of Ba Dinh District Social Insurance Agerncy, pointed out one more obstacle.

To widen the social insurance, co-operation between agencies was needed, but it was difficult to find money to do this, he said.

Moreover, to persuade enterprises to join the social insurance scheme depended to a certain degree on each enterprise's demand.

If an enterprise wanted to keep good workers and trade sustainably, it would buy social insurance and health insurance for its workers. But if an enterprise was only involved in temporary and seasonal work, it would ignore the insurance despite all efforts, said Thien.

Cau Giay District has found a good way to widen the social insurance fund.

The district social insurance joined hands with different ministries, including Labour, Invalids and Social Affairs, Public Security (police) and Taxation to pass on the regulations on social insurance and health insurance.

The inter-sector delegation also hands out forms to register for social insurance.

The district attracted 600 more enterprises buying the insurance last year.

Huynh Thi Mai Phuong, deputy director of Ha Noi Social Insurance, said that to widen the fund, policies should be adjusted to make it more realistic.

For instance, she said, the mode of paying for social insurance should be flexible.

The social insurance sector has worked with other sectors to compile a list of people of working age and the real number of enterprises actually operating in each area.

This will enable the municipal People's Committee demand that each district set targets for new membership.

More than 14,600 enterprises in Ha Noi shut down last year, including 740 with membership of the city's social insurance fund